What is an adjustment in the sales comparison approach?

In the sales comparison approach, an adjustment is a modification to the sale prices of comparable properties to account for differences between the comparable properties and the subject property being appraised. This process is essential to ensure that the comparisons are valid and reflect market value accurately.

Factors that may necessitate adjustments include differences in features such as the number of bedrooms or bathrooms, square footage, location, and amenities. By making these adjustments, the appraiser can align the comparable sales with the characteristics of the subject property, facilitating a more precise and equitable appraisal value.

The other options do not pertain to the adjustments made within the sales comparison approach. The first option regarding corrections to the appraisal fee confuses the appraisal process with financial management. Changes in property size are not adjustments applied in the sales approach but rather might be considered in the initial data gathering phase. Lastly, a reduction in property tax assessments is outside the scope of property valuation methodologies and does not relate to the adjustments made when applying the sales comparison approach.